Term
| •Are long-term or relatively permanent assets such as equipment, machinery, buildings & land |
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Definition
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Term
| characteristics of fixed asset (3) |
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Definition
1.exist physically (tangible assets)
2.owned and used by the company in its normal operations
3.Not offered for sale as part of normal operations |
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Term
| if the asset is long-lived and used as part of operations, it is a ___ |
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Definition
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Term
| if the item purchased is not long lived, it is ___ |
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Definition
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Term
| if item purchased is long-lived but not part of operations, it is ___ |
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Definition
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Term
t or
fixed assets that have been ABANDONED are NO longer classified as fixed assets |
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Definition
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Term
| Long-lived assets that are not used in the normal operations and are held for future resale |
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Definition
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Term
| Costs acquiring the fixed asset are recorded as a debit to the ___ |
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Definition
| related fixed asset account |
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Term
true or false
costs that do not increase the asset’s usefulness are included as part of the asset's cost |
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Definition
| false; recorded as an expense |
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Term
| Direct costs of fixed asset in construction will be DEBITED to ___ |
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Definition
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Term
| Costs that benefit only the current period |
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Definition
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Term
| Costs related to the ordinary maintenance and repairs of a fixed asset |
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Definition
| Ordinary Maintenance and Repairs |
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Term
t or f
Ordinary Maintenance and Repairs is a capital expenditre |
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Definition
| false; revenue expenditure |
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Term
| Costs incurred to improve an asset |
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Definition
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Term
| Costs incurred to extend asset’s useful life |
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Definition
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Term
| extraordinary repairs are recorded as a decrease in the _______ account |
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Definition
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Term
| a contract for the use of an asset for a period of time |
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Definition
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Term
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Definition
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Term
| party whom the rights to use the asset are granted by the lessor; pays rent on a periodic basis for the lease term |
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Definition
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Term
| a classfication of a lease contract where it is accounted for as if the lessee has purchased the asset |
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Definition
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Term
| a classification of a lease contract where it's Accounted for as if the lessee is renting the asset for the lease term |
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Definition
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Term
| the cost where fixed assets lose their ability to provide services |
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Definition
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Term
| is a type of depreciation where its factors include wear and tear during use or from exposure to weather |
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Definition
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Term
| is a type of depreciation where it includes obsolescence and changes in customer needs that cause the asset to no longer provide services for which it was intended. |
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Definition
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Term
| 3 FACTORS IN COMPUTING DEPRECIATION EXPENSE |
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Definition
a.Asset’s initial cost
b.Asset’s expected useful life
c.Asset’s estimated residual value |
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Term
| Sometimes referred to as “scrap value” “salvage value” or “trade-in value” |
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Definition
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Term
| is the estimated value of a fixed asset at the end of its lease term or useful life |
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Definition
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Term
| is the amount of the assets cost that is allocated over its useful life as depreciation expense |
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Definition
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Term
| if asset is taken out or place into service during the FIRST half of the month, the asset is treated as having been purchased or sold on the _______ |
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Definition
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Term
| if asset is taken out or placed into service during the SECOND half of the month, ibutang siya sa ____ |
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Definition
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Term
| what are the three depreciation methods?? |
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Definition
1.straight-line method
2. units-of-output method
3. double-declining method |
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Term
| a depreciation method that provides for the same amount of depreciation expense for each year of the asset’s useful life |
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Definition
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Term
| When an asset’s revenues are about the same from period to period, ____ depreciation provides a good matching of depreciation expense with the asset’s revenues |
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Definition
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Term
| Provides for a declining periodic expense over the expected useful life of the asset |
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Definition
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Term
| Provides the same amount of depreciation expense for each unit of output of the asset |
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Definition
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Term
| for the FIRST YEAR, the book value of the asset is the ___ |
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Definition
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Term
| provides a higher depreciation in the first year of the asset’s use, followed by declining depreciation amounts |
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Definition
| double-delcning method/accelarated depreciation method |
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Term
| This process of transferring the cost of natural resources to an expense account |
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Definition
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Term
| is the amount of depletion expense that has built up over time in relation to the use of a natural resource |
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Definition
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Term
| assets that do not exist physically which are long lived and used in operations |
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Definition
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Term
| Results from the passage of time or a decline in the usefulness of the intangible asset |
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Definition
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Term
| An intangible asset that grants exclusive rights to produce and sell goods with one or more unique features |
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Definition
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Term
| Patent amortization is usually computed using the _____ method |
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Definition
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Term
| s an accounting method for spreading out the costs for the use of a long-term asset over the expected period the long-term asset will provide value |
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Definition
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Term
t or f
there is no contra asset for intangibles |
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Definition
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Term
| the intangible asset that grants the exclusive right to publish and sell a literary, artistic, or musical composition |
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Definition
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Term
| Is a name, term or symbol used to identify a business and its products |
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Definition
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Term
| Refers to an intangible asset of a business that is created from such favorable factors as location, product quality, reputation, and managerial skill |
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Definition
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Term
| Measure of the company’s efficiency in using its fixed assets to generate revenue |
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Definition
| fixed asset turnover ratio |
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Term
| Measures the number of dollars of sales earned per dollar of fixed assets |
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Definition
| fixed asset turnover ratio |
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Term
| reduces the purchase price when the seller takes an asset in trade. |
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Definition
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Term
| An amount that the seller allows the buyer for the old equipment traded in |
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Definition
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Term
| The remaining balance – the amount owed – is either paid in cash or recorded as a liability |
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Definition
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Term
t or f
An exchange has commercial substance if future cash flows change as a result of the exchange |
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Definition
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Term
| are contracts in which the property/asset owner allows another party to use the property/asset in exchange for some consideration, usually money or other assets. |
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Definition
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Term
| refers to an accounting method used to allocate the cost of a tangible or physical asset over its useful life. |
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Definition
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